Judgment

HEGDE, J.:- These are appeals by special leave. They related to penalty proceeding. The assessee, M/s. Dyer Meakin Breweries Ltd. is carrying on business of manufacture and sale of wines, beer and fruit juices, etc. at Ghaziabad. The assessee was registered as a dealer under the Central Sales Act, 1956 (hereinafter referred as "the Act") at Ghaziabad. During the assessment years 1958-59 and 1959-60, the assessee submitted its sales tax returns to the Sales Tax Officer at Ghaziabad and it was assessed by that Officer Subsequently, the Sales Tax Officer, Ghaziabad, came to know that the assessee had misused some of the C forms issued to it. According to his information, the assessee, by misusing the C form, had purchased goods worth Rs. 11,754.62 in the assessment year 1958-59 and goods worth Rupees 2,68,242-38 in the assessment year 1959-60. Hence the Sales Tax Officer, Ghaziabad issued to the assessee a notice on January 8, 1960, calling upon it to show cause why he should not impose penalty on it under S. 10-A of the Act. The assessee did not give any explanation. Sometime thereafter, the assessee made an application praying for condonation of its default, alleging tha